How Wealthfront Earned Six-Figure Health Plan Savings

When Wealthfront grew to more than 100 employees, they wanted to explore options to move from their professional employer organization as it became cost prohibitive. With a lean culture, it was critical that new benefits didn’t increase overhead but could also improve their benefits offering. Even with a group that had relatively low healthcare needs, Wealthfront struggled to quantify the savings and benefits of offering a Heath Savings Account paired with Consumer Driven Health Plans.

Lumity’s team analyzed Wealthfront’s current plan design with anonymized employee census information and modeled expected health costs. By modeling current versus expected benefits expenses, the Lumity team also worked with the CFO to forecast cost savings, part of which was offered back to employees as HSA contributions to incentivize uptake of the high deductible health plan. During open enrollment, Lumity’s health plan recommendation engine paired the highest value plan to each individual’s needs, allowing them to see their current costs, what they’d be expected to pay under each plan, and what coverage they would receive. Finally, the Lumity team worked closely with the CFO to choose and set up payroll and enact ancillary and voluntary benefits.

Employees were ecstatic with the personalized health plan recommendations and the transition and executives were pleased that the transition from PEO was seamless. The real-time insights into benefits expenses facilitated budgeting and FP&A for the CFO. Wealthfront is achieving an annual savings of nearly $120k in healthcare benefits while improving the quality (and lowering costs) of their plans. Additionally, introducing partially-funded HSA plans resulted in an uptake increase of 50% among employees. Lumity saved Wealthfront an additional $100k on worker’s comp plans by assessing needs and evaluating the highest-value vendor.

As Wealthfront’s dedicated benefits consultant and broker, the total package of service and software of Lumity’s benefits solution was available at no additional cost to the company.

As a very small team for both HR and Finance, the personalized data-driven recommendations for each employee took a huge burden off us. Our dedicated account team at Lumity handled our entire transition making the shift easy. Finally, their real-time expense reporting is continuing to help us more accurately budget and forecast this major expense line throughout the year.

Ashley Johnson
Chief Financial Officer

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